Best Esthetician Insurance Companies of 2022

NACAMS wins for an affordable policy with occurrence form coverage

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If you’re an esthetician, liability insurance is essential to protecting your business. Estheticians perform procedures that can sometimes produce unwanted results, and one lawsuit from an angry customer has the potential to destroy your career and leave you broke if you’re uninsured. 

Whether you’re a medical esthetician, skincare specialist, waxing professional, or spa worker, you’ll need a policy that includes at least professional liability coverage and general liability coverage. To help you choose the right insurance company, we evaluated providers based on financial strength, customer satisfaction, coverages and limits offered, billing options, and more. These are our top picks for smart estheticians who want to be prepared for anything.

Best Esthetician Insurance Companies of 2022

Best Overall : NACAMS


NACAMS

NACAMS

  • AM Best Rating: A+
  • Occurrence coverage: Yes
Pros & Cons
Pros
  • Covers more than 350 services wherever you work

  • Excellent customer service reviews

  • Few complaints with the NAIC 

  • Occurrence-based claims

  • Offers monthly billing with premiums as low as $16.41

Cons
  • Does not offer business personal property coverage

  • Certain claims must be reported within 2 years of policy expiration

Why We Chose It

Policies offered by the National Association of Complementary and Alternative Medicines (NACAMS) are underwritten by Arch Specialty Insurance Company, which has an A+ (Superior) financial strength rating with AM Best and far fewer complaints with the National Association of Insurance Commissioners (NAIC) than expected given its size. Additionally, customers rave about the service NACAMS provides policyholders on Trustpilot. NACAMS offers occurrence form coverage, which means you’ll be covered if the incident occurred while the policy was active, even if you file a claim after the policy expired. However, bear in mind that you’ll only have two years after your policy expires to report any professional or product liability claims. 

Though NACAMS does not offer business personal property insurance, estheticians who rent their facilities and equipment will be protected with up to $100,000 in coverage if the rental space is damaged and up to $1,000 in coverage for stolen, damaged, or lost rental equipment. An identity protection plan is also included. Plus, you’ll get bonus perks, like discounts on business supplies and a free professional website. Policies are affordable compared to other companies, and monthly billing options are available, as is pricing for students.

For more information, read our full review of NACAMS Esthetician Insurance.

Runner Up : ASCP


Associated Skin Care Professionals (ASCP)

Associated Skin Care Professionals (ASCP)

  • AM Best Rating: A-
  • Occurrence coverage: Yes
Pros & Cons
Pros
  • High coverage limits

  • Occurrence-based claims

  • Offers an add-on for business personal property coverage

  • Excellent customer reviews on Trustpilot

Cons
  • Pricier than some other companies

Why We Chose It

A membership to Associated Skin Care Professionals (ASCP) includes professional, general, and products liability coverage as well as educational and marketing resources useful for advancing estheticians’ careers. The policy covers up to $2 million per occurrence and up to $6 million per member per year, one of the highest coverage limits we’ve seen. What’s more, ASCP will also cover any legal fees that go above and beyond those limits. The policy costs $259, and you can add $10,000 in business personal property insurance for an additional $95. The company also offers coverage for advanced esthetic services, such as LPL and CoolSculpting.

ASCP policies are underwritten by Allied Professionals Insurance Company, which has an A- (Excellent) financial strength rating with AM Best. That’s the lowest grade we typically recommend, but AM Best predicts a positive outlook for the company. The company also had only one complaint with the NAIC over the last three years for professional liability insurance. Reviews about the company on Trustpilot are positive as well. And ASCP provides occurrence form coverage, so you can remain protected for incidents that occurred while your policy was in effect, even after your policy expires. 

Best for Comprehensive Coverage : The Hartford


The Hartford

The Hartford

  • AM Best Rating: A+
  • Occurrence coverage: Varies
Pros & Cons
Pros
  • Customizable policies with a variety of coverage types

  • Coverage for businesses with employees

  • Few complaints with the NAIC

Cons
  • Location-based coverage

  • Must provide personal info for a quote

Why We Chose It

The Hartford is ideal for estheticians who want to create a fully customized, comprehensive policy, particularly businesses that have employees. You can get a business owner’s policy, which includes general liability, commercial property, and business income insurance, and add professional liability and product liability coverage to cover a wide range of incidents. You can also get workers’ compensation insurance if you have employees. 

Coverage isn’t mobile—you’ll need to specify where you work to get a quote—but you can get a policy that covers you if you travel to clients’ homes. The available limits also vary based on your location and revenue. For example, we found coverage available up to $2 million per occurrence and up to $4 million per year in one location, but up to $2 million per occurrence and up to $3 million per year in another. The Hartford offers both claims-made and occurrence form policies, depending on the type of coverage. The Hartford also gets high marks for financial strength and customer satisfaction, with an A+ (Superior) financial strength rating from AM Best and very few complaints with the NAIC. 

Best for Policy Management : Next Insurance


Next Insurance

Next Insurance

  • AM Best Rating: A-
  • Occurrence coverage: Varies
Pros & Cons
Pros
  • Online claims and policy management with digital certificates

  • Customize your policy with a variety of coverage types

  • Highly rated mobile app

  • Live chat support

  • Monthly billing options

Cons
  • Professional liability is claims-made

Why We Chose It

Next Insurance offers general liability, professional liability, commercial auto, workers compensation, and commercial property insurance to estheticians in a customizable package with premiums starting as low as $220 per year. Monthly billing options are available. Next is a great choice for estheticians who prefer to transact online, with a highly rated mobile app and online portal you can use to manage your policy, file a claim, and share your digital certificate of insurance with anyone. There’s even a live chat feature with a U.S.-based support team. 

Next offers three tiers of coverage: Pro Plus, Pro, and Basic. Each tier covers commercial auto, general liability, workers’ compensation, and commercial property insurance, but has different coverage limits, depending on the tier. For example, the Pro Plus tier has the following limits: 

  • Commercial auto: $1 million/single limit
  • General liability: $1 million per occurrence/$2 million aggregate
  • Workers’ comp: $1 million/per incident
  • Commercial property: $25,000/per occurrence

One downside is that professional liability coverage is claims-made, but general liability coverage is occurrence form. So if a lawsuit is brought against you after your policy expires, you may or may not be covered, depending on the type of lawsuit. 

Next has an A- (Excellent) financial strength rating with a stable outlook from AM Best, which isn’t as strong as some competitors but still indicates it’s a reliable company.

Best for Cheapest Coverage : Beauty & Bodywork Insurance


Beauty & Bodywork Insurance

Beauty & Bodywork Insurance

  • AM Best Rating: A+
  • Occurrence coverage: No
Pros & Cons
Pros
  • Liability insurance for only $96 per year

  • Instant coverage with no quote process

  • No deductible on liability claims

Cons
  • Claims-made policy

  • Doesn’t offer business property coverage

  • Annual billing only

Why We Chose It

Beauty & Bodywork Insurance offers the cheapest premiums of the companies we reviewed. Students pay $67 annually while professionals pay $96 annually. For that low price, you get up to $2 million in coverage per occurrence, $3 million aggregate for general and professional liability claims, and $3 million aggregate for product liability claims. Personal and advertising injury coverage is also included, as is $300,000 in rental damage coverage. You can also add an additional insured for $15. The drawback to the policy is that it’s claims-made, so you’ll only be covered for claims made while the policy is in effect. 

Beauty & Bodywork Insurance policies are underwritten by Great American Insurance Company, which has an A+ (Superior) financial strength rating with AM Best and far fewer complaints with the NAIC than expected given its size. Beauty & Bodywork Insurance also has excellent customer service reviews on third-party websites. However, the company offers fewer coverage options than insurers like Next or The Hartford.

Best for Financial Strength : Three Insurance


Three Insurance

Three Insurance

  • AM Best Rating: A++
  • Occurrence coverage: No
Pros & Cons
Pros
  • High coverage limits

  • A++ (Superior) financial strength rating with AM Best

  • Comprehensive coverage for a variety of incidents

Cons
  • Only available in select states

  • No online claims

  • More complaints than expected

Why We Chose It

If you need a robust policy that covers general and professional liability, business interruption, cyber liability insurance, workers’ compensation, commercial auto, and property damage with high limits, Three Insurance by Berkshire Hathaway would be a wise choice. Coverage limits up to $10 million are available for some businesses, with legal fees covered above and beyond that. Plus, Berkshire Hathaway and its subsidiaries hold an A++ (Superior) financial strength rating from AM Best, the highest grade available. 

But if you don’t need all the coverages that the Three policy includes, you’ll likely find cheaper options elsewhere. Furthermore, Three is currently only available in select states, and the Three policy is a claims-made policy, which doesn’t provide as much protection as an occurrence form policy. 

Final Verdict

If you’re an esthetician looking for a basic, affordable policy, and you aren’t concerned about personal property coverage, NACAMS may be the best choice for its occurrence form policy. The company also is highly rated for financial strength and customer satisfaction. ASCP is a close second and offers a business personal property coverage add-on. 

If you’re just breaking into the industry and need to get insured as cheaply as possible, Beauty & Bodywork Insurance is a good option. But if you need more comprehensive coverage, particularly if you have employees, consider the coverage offered by Three Insurance. If that’s too robust, you can also look at getting a customizable policy from Next or The Hartford.

Compare the Best Esthetician Insurance Companies

  NACAMS ASCP  The Hartford  Next  Beauty & Bodywork  Three Insurance 
AM Best A+ A- A+ A-  A+ A++
Complaints  Far fewer than expected  Fewer than expected  Far fewer than expected  Far fewer than expected  Far fewer than expected  More than expected 
Property insurance  No  Yes  Yes  Yes  Limited  Yes 
Online purchase  Yes  Yes  Yes  Yes  Yes  No 
Billing options  Monthly  Quarterly  10 monthly payments  Monthly with two payments upfront  Annually  Monthly 
Aggregate limits  $3 million  $6 million  Varies  Varies  $3 million  $10 million 
Occurrence/Claims-made  Occurrence  Occurrence  Both  Both  Claims-made  Claims-made 

Occurrence form policies are preferred because they offer more protection. If a client were to bring a lawsuit against you after your policy expires, you wouldn’t be covered under a claims-made policy, even if the incident occurred while you had insurance coverage.

Frequently Asked Questions

What Is the Best Esthetician Insurance?

The best esthetician insurance for you will depend on your coverage needs. A good policy will include professional and general liability insurance, but you may also need additional coverage, such as commercial auto or business personal property coverage. When choosing an insurance company, make sure the coverage you need is offered. 

All else being equal, you should choose an occurrence form policy over a claims-made policy, since a claims-made policy can leave you vulnerable to lawsuits brought after your policy expires. But if you have budget concerns or need coverages not offered by occurrence form companies, you may ultimately select a claims-made policy. 

The best esthetician insurance for you will also depend on where you work and whether you have employees. Some policies follow you wherever you work, while others require a permanent business location. And if you have employees, you’ll likely need to choose a company that offers workers’ compensation insurance. 

What Kind of Insurance Does an Esthetician Need? 

General and professional liability insurance are essential for estheticians. If you own or rent equipment to provide your services, you’ll also want business personal property coverage. If you drive to your clients, you’ll need commercial auto coverage. And if you have employees, you’ll likely need workers’ compensation insurance. Business income insurance is also valuable to have—it covers lost income if you need to shut down operations for a covered reason—but it’s not absolutely necessary. 

What Is Liability Coverage?

Liability coverage helps cover legal fees and judgments against you as a result of a client lawsuit. Estheticians need two types of liability coverage—general liability and professional liability coverage. General liability insurance covers claims related to bodily injury or property damage that arise when you are providing your services. If a customer slipped and fell in your place of business because your floor was wet, their medical bills would be covered.

Professional liability insurance helps cover damages and legal fees associated with lawsuits related to negligence, misrepresentation, personal injury, or incorrect advice. So if a customer has an allergic reaction to a product you recommended, and they sue you for a related financial loss, your professional liability insurance would cover you. 

How We Chose the Best Esthetician Insurance Companies 

To determine the best insurance companies for estheticians, we collected 20 data points on the top esthetician insurance companies by premium. These data points include:

  • Financial strength
  • Cost
  • Policy types and features
  • Exclusions
  • Consumer complaints
  • Online tools
  • Billing options
  • Coverage limits

We gave preference to companies with top ratings from AM Best, a low rate of customer complaints, and those that offer coverage based on the date of the occurrence as opposed to when the claim was made. Companies with high aggregate coverage limits, monthly billing, low premiums, online purchase options, and those that offer property coverage got ratings boosts. To rank the companies we researched, we applied the following weights to each customer-focused category:

  • Types of coverage and features: 40% 
  • Financial stability: 20% 
  • Consumer complaints: 25%
  • Online purchase: 10%
  • Billing options: 5%

We delved further into product and company specifics to determine which companies were best for which types of consumers. Using this research, we determined which companies offer the best esthetician insurance.

Article Sources
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  1. NAIC. “Results by Complaint Code.”

  2. NAIC. “Results by Complaint Code.”

  3. AM Best. “Guide to Best’s Financial Strength Ratings - (FSR).”